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Herbal prescriptions have been recognized as potentially valid by the scientific medical establishment, and their use has been increasing. Sida tiagii Bhandari (Sida pakistanica; Family - Malvaceae), a native species of the Indian and Pakistan desert area, popularly known as "Kharenti" in India; is used as a folk medicine. In the present study, various fruit extracts of Sida tiagii were investigated for it’s hypoglycemic and antioxidant potential in neonatal streptozotocin-induced (type 2) diabetic rats. Grinded fruits were extracted with 90% ethanol and partitioned with n-hexane (n-Hexane Extract; HS) and ethyl acetate (Ethyl Acetate Extract; EAS) successively. The residual ethanol fraction (Residual Ethanol Extract; RES) was dried on water bath separately. All three extracts were administered orally at a dose of 200 mg/kg and 500 mg/kg. Blood glucose level, cholesterol, GSH (glutathione), elevated thiobarbituric acid-reactive substances (TBARS), glycated hemoglobin and liver glycogen contents were measured after 19 days treatment. The residual ethanol extract of Sida tiagii fruits significantly improve glycemic parameter and showed antioxidant activity in diabetic rats. The results of the present study indicated that the active fraction of Sida tiagii (i.e., RES) is suitable for development of a promising phytomedicine for the treatment of diabetes mellitus.